(Yicai Global) Feb. 17 -- Bank of China Ltd. [SHA:601988] said it recently processed the first SWIFT (Society for Worldwide Interbank Financial Telecommunication) gpi (Global Payments Innovation) international remittance business, making it the first Chinese bank to institute gpi. Industrial and Commercial Bank of China Ltd. [SHA:601398; HK:1398] will also put gpi into operation in May this year.
SWIFT held a ceremony for gpi operation in Beijing on Feb. 16, where it announced multiple transacting banks are initiatively applying its gpi service available since this January. Gpi has been put into use by banks including ING Bank N.V., Standard Chartered Bank and Citibank Corp., and is available in channels among 60 countries. More banks will also adopt this service in a few months.
BOC also announced this event on the same day.
SWIFT gpi project is a global payments innovation project initiated by SWIFT and participated in by global large banks. By establishing an interbank SWIFT gpi business circle and observing the business rules designed collectively, arrival of funds at designated accounts on the same day, transparency of charges, trackable remittance status, complete remittance information transfer can be achieved, greatly improving clients' experience with international payments.
Clients demand a higher level of transparency in today's world. After remitting money, clients expect to be able to check in an instant on the status of the remittance, and learn when the beneficiary can receive it. The previous operating conditions in correspondent banks prevented this, with each bank only able to ensure and share payment information from its own side. An important breakthrough of SWIFT gpi lies in its ability to help banks provide quicker, more transparent and trackable cross-border payment services to their clients.